Leighton lands HBF in Perth

Health insurer HBF is negotiating to occupy and own a $100 million tower being developed by
Leighton
Properties within the massive Perth City Link project.

The 13,000 square metre tower will replace HBF’s headquarters in Murray Street, which the insurer plans to sell.

The $3 billion Perth City Link redevelopment sits in the heart of the state capital, reconnecting the CBD with Northbridge. It comprises three precincts, including Kings Square, where HBF’s new headquarters will stand.

The health insurer will join Shell Australia in the new precinct, after Leighton secured the energy giant late last year as the anchor tenant for its first project in Kings Square, a 15,000 to 20,000 sq m build with an end value of as much as $190 million.

The new HBF tower will be worth between $95 million and $105 million, according to market sources.

The 55,000 square metre building at the western end of Collins Street will be built by the listed giant’s own construction arm, Leighton Contractors, which is likely to become an anchor tenant in the building.

Leighton has also signed on top city law firm Corrs Chambers Westgarth Legal to anchor another 8800 square metres in the 26-level tower.

Related Quotes

Company Profile

Meanwhile, Leighton is forging ahead in Kings Square, which is the first precinct in the Perth redevelopment to get under way.

The City Link project is a WA government project to overcome an inner-city rail barrier, to join the entertainment precinct of Northbridge with the city centre. Leighton is developing a 2.5 hectare site owned by media mogul
Kerry Stokes
’ Seven Entertainment.

Last year, Leighton said its site would ultimately include three more office towers totalling 85,000 square metres, plus two apartment ­buildings.

Shell Australia is planning to double its workforce in Perth during the next two years as its oil and gas projects ramp up.

A consortium comprising Leighton and
Mirvac
is also the front runner to develop the government’s 5.1 hectare holding in the Link project.

If the deal with HBF is finalised as expected, the health insurer will move to the Kings Square site in 2015.

Over the next five years HBF aims to become a broader health provider. The new headquarters could then incorporate a range of health-related services.